In the third quarter higher production costs and write-downs compared to last year contributed to the fact that, at -Can$0.7m, net profit of Pinnacle Renewable Energy Group transpired to be slightly negative. Taking into consideration additional costs related to the transition to IFRS 16
(-Can$0.6m) and insurance payouts in connection with the fire damage at the Entwistle plant (+Can$1.5m), net loss amounted to some -Can$1.7m. The adjusted EBITDA, in contrast, at Can$14.3m (14.5m), was only very marginally lower than in the third quarter of 2018. Gross profit including IFRS and Entwistle, at Can$18.7m, surpassed the preceding year’s figure by 4.5%. At Can$44.24/t, the gross margin per ton remained virtually unchanged.
Sales of 423,000t pellets generated turnover of Can$90.7m, total turnover amounted to Can$92.6m. In the context of regional distribution of turnover, significant changes vis à vis last year were recorded during the period covered by the report. Turnover generated with customers in Europe amounted to Can$77.9m (55.6m), representing an increase of 40% in comparison to 2018. Turnover generated with Asian customers, in contrast, dropped by well over half to Can$12.0m. Within North America, turnover amounted to only Can$2.7m. As a result of the changes in distribution of turnover, the proportion of Pinnacle’s total turnover generated in Europe increased by 21% to just under 86%.
In the area of sales, Pinnacle was able to conclude another long-term contract in the reporting period. On 17 October a contract for 100,000t/annum was ratified with Japanese Mitsui & Co.; deliveries are to begin in the third quarter of 2023. As of the end of September, orders in hand thus amounted to Can$7.1bn.
